Question 39 (2.5 points) Which one best describes the use of positive leverage? For an all...
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Question 39 (2.5 points) Which one best describes the use of positive leverage? For an all cash deal, you are making an equity contributing of $1M to buy a $1M property making a 10% return. However, if you able to obtain a loan of $800K (at high interest rate terms) then your equity contribution is only $200K and making a lower return of 9% For an all cash deal, you are making an equity contributing of $1M to buy a $1M property making a 10% return. However, if you able to obtain a loan of $800K (at competitive low interest rate terms) then your equity contribution is only $200K and making a higher return of 18%. For an all cash deal, you are making an equity contributing of $1M to buy a $1M property making a 10% return. However, if you able to obtain a loan of $800K (at reasonable interest rate terms) then your equity contribution is only $200K and making a higher return of only 12%. For an all cash deal, you are making an equity contributing of $1M to buy a $1M property O making a 10% return. However, if you able to obtain a loan of $800K (at reasonable interest rate terms) then your equity contribution is only $200K and making a higher return of only 10%. Question 39 (2.5 points) Which one best describes the use of positive leverage? For an all cash deal, you are making an equity contributing of $1M to buy a $1M property making a 10% return. However, if you able to obtain a loan of $800K (at high interest rate terms) then your equity contribution is only $200K and making a lower return of 9% For an all cash deal, you are making an equity contributing of $1M to buy a $1M property making a 10% return. However, if you able to obtain a loan of $800K (at competitive low interest rate terms) then your equity contribution is only $200K and making a higher return of 18%. For an all cash deal, you are making an equity contributing of $1M to buy a $1M property making a 10% return. However, if you able to obtain a loan of $800K (at reasonable interest rate terms) then your equity contribution is only $200K and making a higher return of only 12%. For an all cash deal, you are making an equity contributing of $1M to buy a $1M property O making a 10% return. However, if you able to obtain a loan of $800K (at reasonable interest rate terms) then your equity contribution is only $200K and making a higher return of only 10%.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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